Why we need to ask you for information
New Zealand has passed legislation called the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (“the AML/CFL Act” for short). The AML/CFT Act reflects New Zealand’s commitment to the international initiative to counter the impact that criminal activity has on people and economies within the global community.
Changes to the AML/CFT Act mean that from 1st July 2018 lawyers must comply with its requirements. Law firms must do a number of things to help combat money laundering and terrorist financing, and to help Police bring the criminals who do it to justice. The AML/CFT Act requires this because the services law firms and other professionals offer may be attractive to those involved in criminal activity.
Law firms and other professionals must assess the risk they may face from the actions of money launderers and people who finance terrorism and must identify potentially suspicious activity. In making that assessment, law firms must obtain and verify information from prospective and existing clients about a range of things. This assessment is referred to within the AML/CFL Act as “customer due diligence”.
Customer due diligence requirements
Customer due diligence requires law firms to undertake certain background checks before providing services to clients or customers. Law firms must take reasonable steps to ensure the information they receive from clients is correct, and so they need to ask for documents that show this.
We need to obtain and verify certain information from you to meet these legal requirements. This information includes:
Documents such as your current driver’s licence; passport or your birth certificate, and documents that show your address (dated within the 12 months of the transaction) – such as a current bank statement or utilities account will be required.
If you are seeing us about company or trust business, we will need information about the company or trust including the people associated with it (such as directors and shareholders, trustees and beneficiaries).
We may also need to ask you for further information.
We will ask you about the nature and purpose of the proposed work you are asking us to do for you. Information confirming the source of funds for a transaction may also be necessary to meet the legal requirements.
If you cannot provide the required information
If we are not able to obtain the required information from you, it is likely we will not be able to act for you. Regardless of whether you are a existing client, we are still required to obtain information from you.
Before we begin acting on your behalf, our initial contact will be by way of our Client Letter of Engagement which will outline what information and documents we will require from an INDIVIDUAL / COMPANY / PARTNERSHIP / TRUST / ESTATE.
Our monitoring obligations
HCOL are obliged to comply with all laws applicable to us in all jurisdictions, including (but not limited to):
Anti-money laundering and countering financing of terrorism laws
Laws relating to tax and client reporting and withholdings
We will be required to undertake customer due diligence on you; persons acting on your behalf and other relevant persons such as beneficial owners and controlling persons. We may not be able to begin acting, or to continue acting, for you until this is completed.
To ensure our compliance and yours, we may be required to provide information about you, persons acting on your behalf or other relevant persons to government agencies. There may be circumstances where we are not able to tell you or such persons if we do provide information.
Please ensure that you and/or any of the persons described previously are aware of and consent to this. It is important to ensure that all information provided to us is accurate. If the information required is not provided or considered by us to be potentially inaccurate, misleading, or in contravene of any law, we may terminate or refuse to enter into an engagement.
Please contact the lawyer who will be undertaking your work if you have any queries or concerns.